Barclays: Emerging markets outperformed expectations in Q2, Asia remains the region with the most upside potential.

Jinse Finance reports that on June 25, Barclays Research team released its latest quarterly Emerging Market Economic and Strategy Outlook report. Barclays stated that since the second quarter, geopolitical tensions and energy prices have been the main factors driving market trends, but emerging market economies and asset performance have exceeded expectations. The Federal Reserve's policy cycle may bring new challenges to local currency assets in emerging markets, but a easing of the Middle East situation could also create room for their performance. Investors will pay more attention to different markets and the excess return opportunities driven by their fundamentals.

Barclays believes that the Asian market remains the region with the most upside potential among emerging markets, and has raised its economic growth forecast for the region in 2026 to 5.2%. The previously feared supply chain shocks have not triggered a regional growth slowdown. Thanks to resilient exports, particularly strong performance in technology exports, as well as the ability of companies and governments to reallocate energy supplies, most economies except the Philippines have performed significantly better than expected.